AGM12 Jul 2019 12:33
Morning Gents and Ladies – I don’t post often, but went to the meeting yesterday (1 of only 3 investors) which was great as plenty of time with both Paulo and Charlie – key points in short
The company is now at break even, yes slightly profitable, but that amount pretty negligible and this presuming no current production glitches example pumps breaking ect, but obviously production is steadily increasing as we speak as more pumps are brought online / fine tuned.
Business model / activity this year, I have a successful business (may mean nothing to some) but IMO everything they have done so far is correct, intelligent and most important logical. They simply had to build an operational O/G business with sustainable clear platform and credibility (with other options) which now at 96 barrels average over the last 3 months, is credible and presentable for reserve financing. The acquisition of Attis provides numerous opportunities beyond producing simply for themselves, example J/V’s / farm ins with the bigger companies and small co well management – multiple streams of income for the future.
PQE – compared to their own inhouse plans / expectations, well they currently much more excited about their own, should Add that Paulo is deep under water with is own personal PQE investment.
Forest Hill – forget it for now, obviously all kinds of legal issues access, delivery ect. Yes ‘hands on’ Eddie got wells flowing here and not his fault the legal issues popped up, but the sustained rates were not as high as the initial flashed RNS rates, which was a common theme and the reason he had to go, so the asset is ok and still there, but from a business point of view simply not worth the effort at this moment, with other easier targets.
In the short term – well the upcoming CPR’S are key, obviously they wouldn’t give up anything price sensitive, but they seem pretty confident, and very much warmed to suggestion of them buying more shares.
2 to 5 year plan ? the famous million dollar question, well Paulo’s a big hitter powerful personality and taken a major haircut to come to Attis. He’s the main man here and running everything important overground and he’s not here to make a quick killing. Thom the man underground I didn’t get to meet (flight delayed) though understand he was having other meetings later possibly other investors. Charlie – IMO is a down to earth non excitable but knowledgeable guy, doing the other jobs
DYOR